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Updated over 5 years ago,

User Stats

356
Posts
311
Votes
Allen L.
  • Rental Property Investor
  • Chicago and mainly invests in KS remotely
311
Votes |
356
Posts

under contract on a property with mold

Allen L.
  • Rental Property Investor
  • Chicago and mainly invests in KS remotely
Posted

Hi guys, I'm currently under contract and doing due diligence on a property with mold issue. The property has a crawlspace foundation and due to it being an estate sale, the utilities haven't been turned on in a while. The crawlspace is a mud pit and the moisture is rising to the ground level, creating mold on the cabinets and wood paneling. I was planning on replacing the cabinets and remove the wood paneling anyways so it doesn't seem like such a huge deal, but the home inspector said that there appears to be some black mold in the back wall of the addition (garage conversion). 

In terms of cost, I am under contract for 45K, closing cost 2K, and plan on spending 20-25K turning it from a 2/1.5 to 4/2. The property can support the additional bedrooms. The ARV is around 110-130K and I am looking to keep it as a BRRRR rental.

My plan:

I am planning on airing out the crawlspace and turning on the utilities to have air circulating throughout the house for starters. Also planning on correcting soil grading issue around the house, and possibly installing vapor barrier, but unsure whether vapor barrier is necessary. I am happy to tackle this mold issue in the most cost effective way possible as long as the numbers still make sense. But because I haven't dealt with this kind of mold issue, what should I be worried about, that I am currently ignorant of?

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